Cineworld to sell, leaseback some U.S. cinemas

(Reuters) - British cinema operator Cineworld Group Plc said on Wednesday it signed a deal to sell and lease back U.S.-based multi-screen cinemas to units of Realty Income Corp.

Cineworld will sell 17 cinemas for a cash consideration of $286.3 million (222 million pounds) and lease them back under 15-year leases.

The company, which had bought U.S. cinema chain Regal Entertainment for $3.6 billion, said it was also in talks with a separate party for a sale and leaseback deal involving 18 multi-screen cinemas based in the United States.

The terms of the deal will be similar to Cineworld’s deal with U.S.-based REIT Realty Income.

Cineworld’s board will consider returning future proceeds in the form of a special dividend, once the deal is completed.

The company said its plans to integrate Regal were on track.

Separately, the cinema operator said its total revenue fell 9.4 percent on a pro-forma basis for the period between Jan. 1, 2019 and May 12, 2019.

Reporting by Tanvi Mehta in Bengaluru; Editing by Shounak Dasgupta and Rashmi Aich